Qualcomm's Tenstorrent Deal Looks Less Likely

Qualcomm NASDAQ:QCOM may not be buying Tenstorrent after all.

Tenstorrent CEO Jim Keller reportedly said the AI chip startup has not been in acquisition talks with Qualcomm, denying earlier reports of a possible $8 billion to $10 billion deal. Speaking at a media event in Tokyo, Keller said the company is focused on building its own business, including IP operations and high-end scalable AI work in Japan and other markets.

Keller did leave the door open to partnerships. He said Tenstorrent talks with many companies in strategic areas, adding that interest in big deals across the sector has increased. But he made clear that a Qualcomm takeover is not currently on the table.

That matters because Tenstorrent is one of the more closely watched AI chip startups. The company claims its chips can run certain AI workloads more efficiently than traditional GPUs.